A member asked over 7 years ago

Extension of fixed rental lease disputed by tenant

My tenant negotiated for an extension of fixed term lease for one more year, one month before the current fixed term lease was to end. As agreed the rent was reduced from current month and his partner added into the lease extension, as variations and stating all other conditions as unchanged. The signed copy by both tenants were sent to my agent without any witness signatures, which my agent did not insist. But all were emailed by tenant from his mail id. My agent also made an error saying that the reduced rent was applicable from 20/3/3017 (instead of 20/3/2017). One month after this the tenant has separated from his partner and says through a lawyer that the extension is invalid due to errors.

Law Advisor Research Team
Researchers at LawAdvisor

Hi there. A lease is a type of contract. If the parties forming a contract agree on one thing but accidentally write down a different thing in the contract, the law says that the mistake can be rectified so that the parties can proceed with the contract as intended. As it is highly unlikely either party in your situation intended the reduced rent rate to apply from the year 3017, a court has the power to correct this clerical error. This would mean the parties are still bound by the lease.

You also said the tenants signed the new lease without a witness. In Western Australia, the law requires a lease to be in the prescribed form, which includes a person witnessing the tenants’ signatures. A witness is not necessarily required when signing a lease extension or renewal, provided the lease terms and tenants remain the same as the original lease. However, in your situation, because the tenants on the lease changed, the lease extension must have been in the prescribed form and properly witnessed. If this was not done, the lessor may be liable to pay a fine, although this is unlikely given the relatively minor nature of the oversight. As the lessor, you may also be able to defer liability to the agent who was responsible for the errors.

Based on the information you provided, it is likely the lease extension was validly entered despite the two administrative errors. Assuming this is correct, the tenants are bound by the lease for the duration of the fixed-term tenancy. If the tenants want to break the lease early, they must give notice under the Residential Tenancies Act 1987 (WA), if applicable, and may be liable to pay an early-exit fee and/or a portion of the outstanding rent for the remainder of the lease term.

Suggested way forward

You should contact the WA Department of Commerce for advice about resolving your tenancy dispute by calling 1300 30 40 54 or visiting their website (www.commerce.wa.gov.au). You may also want to consider speaking to a property lawyer who can assess your situation and advise you of your legal rights and options. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered over 7 years ago   Legal disclaimer

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